1. What Happened? GC MS’s ₩11.6 Billion Contract Termination

On September 19, 2025, GC MS announced the termination of its ₩11.6 billion GREENCARE Lipid supply contract with Horron (Shenzhen Xilaiheng Medical Electronics Co.,Ltd.). This represents 13.39% of GC MS’s annual revenue and was terminated unilaterally by the counterparty.

2. Why Does it Matter? Financial Impact and Increased Uncertainty

This contract termination is expected to significantly impact GC MS’s performance. With the company already facing challenges due to increased SG&A expenses and declining operating profit, the ₩11.6 billion revenue loss could further worsen its financial health. The unclear reason for the termination also adds to the uncertainty surrounding the company’s future prospects.

3. What’s Next? Stock Price Decline and Weakened Investor Sentiment

The news of the contract termination is likely to negatively affect the stock price. Concerns over declining sales and profitability could dampen investor sentiment, and the recent announcement of weak 2025 half-year results could exacerbate downward pressure. The medium to long-term stock price trend will depend on the company’s diversification efforts and its ability to improve profitability.

4. What Should Investors Do? Prudent Approach and Information Verification are Crucial

  • Information Check: Thoroughly review information related to the contract termination through official company announcements and securities firm reports.
  • Risk Management: Make cautious investment decisions, considering the possibility of investment losses.
  • Company Analysis: Continuously monitor GC MS’s diversification strategies and profitability improvement efforts, and adjust investment strategies by analyzing future prospects.